EVgo demonstrates viable business model as owner-operator of fast-charging network

At this relatively early stage of the EV transformation, no organizational structure for a charging-station operator has emerged that meets the needs of every location. It is unlikely that any single solution will prove a perfect fit everywhere, as each has its strengths and weaknesses. EVgo* has advanced an approach as a non-utility system owner-operator that has garnered national reach — in fact, the EVgo network is currently the largest public fast charging network in the United States.

Alternative approaches are in use on a smaller scale. Utilities are forming partnerships with charging network operators, as Southern California Edison is doing in California, to build out the grid infrastructure needed to support EV charging networks. Ownership models vary, but the goal is the same: growing EV infrastructure to support EV adoption at scale.

The utilities’ status as regulated monopolies adds challenges — particularly with regard to the process of adding investments to the utility’s rate base and the utility’s own decision-making cycles. Both can slow down the flexibility needed to grow and adapt to a fast moving industry. Moreover, a utility’s regional boundaries can limit the potential for expansion of a charging network it owns.